What is the rateable value of my business premises?

When you own or lease a business premises, you may have come across the term “rateable value.” The rateable value of your business premises is the estimated open market rental value of the property as determined by the local government for the purpose of calculating business rates, also known as non-domestic rates. These rates are a form of tax that businesses must pay annually to contribute to local government funds.

How is the rateable value assessed?

Assessing the rateable value involves the Valuation Office Agency (VOA) in England, the Scottish Assessors Association (SAA) in Scotland, and the relevant local authority in Wales and Northern Ireland. These entities use a variety of factors to estimate the value, such as the size, location, and usage of the premises, as well as rental market trends in the area. It is important to note that rateable values are re-evaluated periodically to ensure fairness and accuracy.

Why is the rateable value important?

The rateable value is crucial as it forms the basis for calculating the amount of business rates you must pay. The local council multiplies the rateable value by the national multiplier, known as the uniform business rate (UBR), to calculate your annual business rates bill. Therefore, understanding the rateable value of your premises is essential for budgeting and financial planning.

How can I find out the rateable value of my business premises?

To find out the rateable value of your business premises, you can visit the websites of the appropriate valuation agencies such as the VOA in England or the SAA in Scotland. They provide online tools where you can search for your property and receive the rateable value. Additionally, you can contact your local authority’s revenue department for information on the rateable value.

Can I appeal the rateable value of my business premises?

Yes, if you believe that the rateable value of your business premises is incorrect or unfair, you have the right to appeal. You can submit an appeal to the relevant valuation agency or local authority, providing evidence to support your case. It is advisable to seek professional advice from a chartered surveyor or a rating specialist to guide you through the appeals process.

What factors can affect the rateable value?

Several factors can affect the rateable value of your business premises. These include any changes in the property’s size, usage, location, or improvements made to the building. Market trends and rental values in the area can also influence the rateable value during revaluations. It is worth noting that only significant changes are likely to have a substantial impact on the rateable value.

Do I need to pay business rates if my premises have a rateable value?

Yes, if your business premises have a rateable value, you are required to pay business rates. However, certain exemptions and relief schemes may apply, depending on the specifics of your business and the property. It is advisable to consult your local council or a professional advisor to determine if you qualify for any applicable reductions or exemptions.

What happens if I occupy multiple business premises?

If you occupy multiple business premises, each with its own rateable value, you will be liable for paying business rates for each individual property. These rates may vary depending on the rateable value of each location. It is important to keep track of the rateable values and factor them into your financial planning accordingly.

Can I challenge my business rates bill?

While you cannot challenge the business rates bill directly, you can appeal the rateable value underlying the calculation. By appealing the rateable value, you may be able to reduce the amount you pay in business rates. It is advisable to seek professional advice before initiating an appeal to maximize your chances of success.

How often are rateable values reassessed?

Rateable values are typically reassessed every five years in England, Wales, and Scotland. However, it is important to keep in mind that the revaluation cycle may vary depending on your location. During revaluation, the valuation agencies take into account any changes in property values to ensure that rates remain fair and reflective of market conditions.

What should I do if I disagree with the rateable value?

If you disagree with the rateable value assigned to your business premises, you can appeal the decision. Gather supporting evidence such as rental comparables or professional opinions and submit an appeal to the relevant valuation agency. Seeking professional advice from a rating specialist or a chartered surveyor can greatly assist in presenting a strong case.

What happens if I am overpaying or underpaying my business rates?

If you believe you are overpaying or underpaying your business rates, it is advisable to contact your local council’s revenue department. They can review your rateable value and make adjustments if necessary. It is always recommended to keep accurate records of your business rates payments and regularly review them to ensure they are correct.

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